Nigeria: KEDCO Drags Manufacturers Association Of Nigeria To Court Over Unlawful Interference


Kano Electricity Distribution Company (KEDCO), one of the power distribution companies in the Federal Republic of Nigeria, has dragged the Manufacturers Association of Nigeria (MAN) to the High Court of the Federal Capital Territory, Abuja, over unlawful interference with its business, causing huge financial damage to the company.

A statement signed by Sani Bala Sani, Head of Corporate Communications, on Thursday, said the actions of MAN have subjected the company to a huge revenue loss of over 5.3 billion Naira per month.

The company also accused MAN of unlawful interference with its business, despite their knowledge about the FG’s removal of electricity subsidy for all Band A customers, and fluctuations in various macro-economic indices such as exchange rates, gas prices, inflation, and other factors responsible for computing electricity tariffs.

These factors have warranted KEDCO’s cost-reflective tariff to increase from ₦159.13 per kWh to ₦225.00 per kWh.

The statement attributed the conspiracy to actions including circulars signed and issued by the Director-General of MAN, Segun Ajayi-Kadir, directing all its members, including other Band A customers, to disregard their obligations and pay the old tariff rate on account rather than the statutory new tariff as approved by the regulator.

This has led customers on Band A to breach their obligations to pay the newly approved tariff.

The company said that MAN’s action has unfairly burdened it with the FG’s subsidy removal on Band A customers and the attendant losses, taking cognizance of the fact that KEDCO also has an obligation to pay the power generating companies’ cost-reflective tariff.

KEDCO vehemently lamented MAN’s mindful intention to protect its interest at the expense of causing damage to its business and employees.

This action not only causes unbearable losses to KEDCO, but it also hinders the company’s ability to procure more energy to serve its teeming customers, posing a threat to its corporate sustainability and Nigeria’s power sector growth.

Therefore, despite several engagements with MAN and its affiliate associations, KEDCO is left with no option but to drag MAN to court for committing the tort of procuring a breach of contract, unlawful interference, and conspiracy against its business.